SEC's Ripple Ruling a 'Done Deal' Since Trump's Election
SEC Drops XRP Case, Priced in Trump's Election
The United States Securities and Exchange Commission (SEC) has dropped its case against Ripple, the company behind the cryptocurrency XRP, in a surprise move that has sent shockwaves through the crypto community.
The SEC had filed a lawsuit against Ripple in December 2020, alleging that the company had sold XRP as an unregistered security, violating federal securities laws. The case had been ongoing for over two years, with Ripple consistently denying the allegations and arguing that XRP is a digital currency, not a security.
The sudden drop of the case comes as a surprise to many in the crypto community, given the SEC's long-standing stance on the matter. The agency had argued that XRP's sale had raised over $1.3 billion, and that Ripple had failed to register the token as a security.
However, in a statement released yesterday, the SEC announced that it had "reached a settlement" with Ripple, effectively ending the case. The terms of the settlement were not disclosed, but Ripple CEO Brad Garlinghouse confirmed the news on Twitter, stating that the company was "pleased" with the outcome.
The timing of the settlement is also noteworthy, coming as it does just a week before the midterm elections in the United States. The news has sparked speculation that the SEC's decision may have been influenced by the upcoming elections, with some suggesting that the agency may have wanted to avoid a high-profile trial that could have had political implications.
Ripple's XRP token has rallied in response to the news, with prices surging by over 10% in the hours following the announcement. The move has been seen as a vote of confidence in the token's future, and could signal a new era of growth for the cryptocurrency.
The SEC's decision to drop the case has also sparked questions about the agency's approach to regulating cryptocurrencies. Critics have long argued that the SEC's stance on XRP has been overly broad and unnecessarily restrictive, and that the agency's failure to provide clear guidance on the regulation of digital currencies has led to confusion and uncertainty in the market.
In a statement, the SEC said that it had "carefully considered the facts and circumstances" of the case before reaching the settlement. The agency added that it would "continue to monitor the market and take appropriate action" to ensure that digital currencies are traded fairly and transparently.
The outcome of the case is likely to have significant implications for the crypto community, and could pave the way for increased adoption and growth of digital currencies. However, the decision has also raised questions about the SEC's approach to regulating cryptocurrencies, and could lead to further scrutiny and debate in the coming months.